Item - 2024.EX17.3

The City Manager recommends that:

1. City Council authorize the City Manager and their designate, as appropriate, to negotiate, enter into, and execute a delivery agreement with CreateTO or its managed corporations, Toronto Port Lands Company and Build Toronto, for the project management, design, build, and commissioning on the City's behalf of the City's Shoreside Infrastructure Project for a period of three years, for an amount not to exceed $42,535,680, on terms and conditions acceptable to the City Manager and the General Manager, Parks, Forestry and Recreation and in a form satisfactory to the City Solicitor.

2. City Council direct that funding be provided to CreateTO and its managed corporations, Toronto Port Lands Company and Build Toronto, for the delivery of the project management, design, construction and commissioning on the City's behalf of the City's Shoreside Infrastructure Project from the Parks, Forestry and Recreation Capital Budget and Plan, to a maximum of $42,535,680.

3. City Council authorize the public release of Confidential Attachment 1 to the report (September 17, 2024) from the City Manager once the purchase transactions related to the Shoreside Infrastructure Project have been completed.

At its meeting on July 24, 2024, City Council approved the award of a contract to construct and deliver two new fully electric ferry vessels for operations to and from Toronto Island. This report in response to Council's request outlines the work plan to install shoreside infrastructure at Jack Layton Ferry Terminal ("Shoreside Infrastructure Project") to enable operation of new electric ferries, beginning with the vessels scheduled to arrive in Q4 2026 and Q2 2027 and including other electric replacement vessels to be added to the City's ferry fleet. No capital work is required at the Toronto Islands to enable operation of electric ferries. The work plan presents the tasks and associated timelines required to complete the shoreside infrastructure including the design, permits and approvals, procurement and construction phases.

The report also presents the roles and responsibilities within City divisions, CreateTO and Toronto Hydro to effectively advance the project and ensure oversight regarding project budget, timelines, quality control and integration with parallel projects and with ferry operations.

The shoreside infrastructure is scheduled to be installed by Q3 2026 in advance of the delivery of the first new ferry, the passenger and vehicle vessel, in Q4 (November) 2026 and the new passenger vessel in Q2 (April) 2027. The upgrades to Jack Layton Ferry Terminal will include charging and electrical infrastructure and modifications to the ferry berths to support the new ferries.

This report provides the work plan for the infrastructure associated with forthcoming electric ferries. The estimated capital and related costs, such as project management, to implement shoreside infrastructure is $41,800,000 net of all applicable taxes and charges ($42,535,680 net of Harmonized Sales Tax Recoveries) and is included in the 2024 Capital Budget and 2025-2033 Capital Plan for Parks, Forestry and Recreation. This will be funded through a combination of Debt and Development Charges. City Council approved the funding to support this component of the project through a budget adjustment at the July 24, 2024 meeting through the Capital Variance Report for the Four Months Ended April 30, 2024. This funding will be provided to CreateTO and its affiliate corporations, Toronto Port Lands Company and Build Toronto, to deliver the project.

The estimated cost to implement shoreside infrastructure excludes the incremental costs to be incurred by Toronto Hydro as a part of electrical connection work within the right-of-way that will be recoverable from the City for this project. Toronto Hydro is currently in the process of developing the scope and costing for this work and once that work is completed, those costs will be brought forward for approval. Any future financial implications resulting from electrical connection work within the right-of-way and other additional cost implications would be addressed through future budget processes, as needed.

Contract administration and design costs for the shoreside infrastructure are funded through the separate project budget for Ferry Fleet Replacement Project included in Parks, Forestry and Recreation's approved 2024 Capital Budget and 2025-2033 Capital Plan. The value of Purchase Order Number 6044203 with Concept Naval Experts Maritimes Inc. is $9,346,221 net of all applicable taxes and charges ($9,510,715 net of Harmonized Sales Tax recoveries), including both the Shoreside Infrastructure and vessel construction and delivery.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the information as presented in the Financial Impact Section.